Texas Gas Service - Item 168

[Colleen Pate]

Colleagues –

I’ve received a number of emails regarding the proposed rate increase for Texas Gas Service, and I thought it would be helpful to highlight what the City of Austin is already doing to protect TGS consumers in Austin.

In July, the City of Austin began the process to contest the proposed rate increase through the Railroad Commission of Texas. Austin has joined a coalition of 17 cities served by Texas Gas Service to intervene in the rate case before the Railroad Commission. The coalition is represented by legal counsel and rate experts to evaluate the rate filing and represent the City in matters related to the TGS application.

The August 29 public hearing, which is a new part of the rate case process, provides the public with an opportunity to provide feedback to the Council on the proposed rates and earlier in the process than in prior rate cases. The testimony will be shared with outside counsel and the coalition’s consultants and may be used, including in negotiations between the coalition’s counsel and the gas company.

The coalition’s outside counsel will definitely contest and work to adjust the rate as part of the Railroad Commission process. If a settlement is reached, which is typically a reduction from the initial proposed rate, the coalition’s consultant will make a recommendation to settle. However, that issue and potential recommendation will come back to the Council for another public hearing and action.

We all understand our constituents’ concerns about rising costs and affordability, and we will ensure that TGS consumers in Austin will be treated fairly.

Thanks,
Kirk

On behalf of Mayor Watson

[Alison Alter]

Dear colleagues,

I’ve received a request from customer advocates that we take up the speakers for Item 168 (the Texas Gas Service rates public hearing) right after the consent agenda. I’ll be participating virtually tomorrow and so I wanted to pass along that request for consideration.

Best,

Alison

[Jose Chito Vela]

Thank you, Mayor Watson, for publicly sharing valuable information surrounding the Texas Gas Service rate case. My office has been closely following the developments surrounding these utility rates. Given the understandably needed improvements to our electrical grid in light of extreme weather incidents, which are likely to increase in the future, our residents have had to contend with a number of interim rate increases for their gas service. While state law limits our Council's oversight of interim increases, we do have the authority and the responsibility to appropriately vet regular rate cases and ensure that rates are fair in exchange for high quality and reliable service.

To that end, I support and echo CM Alter's suggestion that we take testimony on Item 168 after the conclusion of the consent agenda. I believe we will have a number of residents wishing to share their testimony, and many of them may not be able to stay until nearly the end of a long agenda. Given that this testimony can be useful to our legal counsel as part of this rate case, it would be prudent for as many people as possible to speak.

Saludos,
Chito